[www.microsoft.com] Microsoft is one of the growing number of American companies who hires temporary workers who are independent contractors to fill permanent spots in its labor force. These “permatemps” are not of the same status of employees who enjoy full benefits with Microsoft.

In this exercise, let us say that Microsoft hires a temporary worker and pays her $20 per hour. Assuming this employee does not go over the statu¬ tory FICA limits prescribed by the chapter, nor goes over the FUTA $7,000 ceiling, how much does the company save by having an “independent con¬ tractor” perform the work over the cost of having an “employee” do the same work?

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